Citigroup has swung to its first annual loss since 2009 after Republican tax reforms forced the USA bank to take a $22 billion (€18bn) accounting hit, one of the biggest such charges in corporate history.

As a result Citi will record its first annual loss since 2009, of $6.2bn.

Last month, President Trump signed a bill that slashed the corporate tax rate to 21% from 35%.

In all, $19 billion of the massive charge was related to Citigroup's deferred tax assets, the largest amassed by any US bank.

The bank, which has significant operations overseas, also took a $3 billion charge on foreign earnings it will bring back to the United States and pay taxes on.

However, banks and other large US corporations expect to benefit greatly from lower taxes and other provisions in the new law over the long term.

"Tax reform is a clear net positive for Citi and its shareholders", Corbat said on a conference call with analysts.

However in the short term a raft of large multinationals have been forced to report a short-term hit to their profits, although none as large as the impact on Citi.

JPMorgan Chase, the biggest U.S. bank, said on Friday it had taken $2.4 billion in one-time tax expenses, primarily for income earned overseas in the past. Last week, JPMorgan Chase took a $2.4 billion charge in the fourth quarter because of the law.

Without the one-time charge, Citigroup's quarterly results would have beat analysts' estimates.

Excluding the effects of the tax revamp, the financial giant's net income was up four percent over the same quarter of 2016 at $3.7 billion, or $1.28 per share.

Shares of Citigroup were up 1.5 percent, at $77.95, when the market opened.

However, fixed income markets revenue decreased 18 percent due to continued lower volatility in the quarter as well as the comparison to a more robust trading environment in the prior year period as a result of the US elections.

However, accounting procedures require Citigroup and other banks to write down previous tax credits and deductions that they have used to lessen future federal tax payments.

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